Alibaba, Haier set up logistics joint venture

BEIJING - Alibaba is to invest US$363.8 million into Haier Electronics, a subsidiary of Haier Group, as part of an agreement to jointly develop a logistics and service network and standard across China to deliver and assemble household appliances and other large items. Alibaba founder, Jack Ma, has previously said China’s poor logistics are slowing the growth of Internet retailing.

Earlier this year, Alibaba said it would join with banks, delivery companies, and industry players to invest RMB100 billion to strengthen China’s logistics network over the next decade. Alibaba generates about 70% of package deliveries in China, and wants a distribution network that can reach virtually any place in the country within a day.